Independent Financial Advisors Bristol such as Churchill Wealth Management are increasingly finding that Pension changes have turned investors and advisers towards venture capital trusts despite fresh legislation having a dampening effect on the market, according to Pete Gale.   

Speaking at FTAdviser’s Tax Efficient Investing Event, wealth manager Peter Gale said tax-relief options available through venture capital trusts would increase demand, particularly if the government decides to tweak the tax perks available to pensions.

The Financial Times has reported that pension tax relief for those on higher incomes looks set to be ditched as part of HM Treasury’s overhaul of the pension system. Chancellor George Osborne is expected to announce a move towards flat-rate government contributions in his March Budget, the Financial Times revealed.

Mr Gale said: “If you’re not already advising your clients on Venture Capital Trusts, then you soon will be,” and added that other options offer less generous tax reliefs. This is despite legislation changes made in 2015, which includes restricting the type of company VCTs could invest in.

He said that as a result of the changes some VCT managers will either be raising smaller amounts this year, or seek no additional funds at all.

Echoing concerns from Jason Hollands, Mr Gale managing director, business development and communications at a large wealth management firm, warned advisors that clients who plan to invest in VCTs in this tax year may be disappointed to find out that VCT investment opportunities are already filled up.

Waseem Herwitker, a finance director at a financial services firm, said “I see VCTs as an addition to all of the planning including pensions, rather than instead of it.”


Independent Financial Advisors Bristol

If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in CliftonBristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.

Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.

About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.